The Supreme Court ruled Friday against a key batch of President Donald Trump’s tariffs, deciding in a 6–3 vote that levies imposed under the International Emergency Economic Powers Act (IEEPA) went beyond presidential authority. Translation: the justices clipped one tool from Trump’s toolbox—but they didn’t take away the whole shed.
The ruling only knocked out tariffs tied to IEEPA, which had been used to address trade imbalances and fentanyl smuggling. What it did not touch are tariffs imposed under Section 232 of the Trade Expansion Act of 1962, a law designed to protect U.S. national security. And that’s where many of Trump’s most impactful tariffs live on.
So while some of the so-called “reciprocal” tariffs on foreign countries are gone, the president has already made clear he has other legal avenues to enforce import taxes. Funny how every time Trump hits a roadblock, he finds another road.
Automakers are already counting the cost. Ford reported its tariff bill hit about $2 billion last year and expects similar costs again this year. The company said it is reviewing the Supreme Court’s decision and will keep working with the administration and Congress to support a strong and competitive U.S. auto industry.
General Motors took a $3.1 billion tariff hit in 2025 and expects another $3 to $4 billion in 2026, even as it increases domestic vehicle production. Apparently, reshoring manufacturing is expensive—who knew?
Nissan is also boosting U.S. production, yet still anticipates roughly a $2 billion earnings hit in 2026. The company said it is evaluating how Friday’s ruling will affect its business.
Furniture shoppers hoping for quick price drops shouldn’t hold their breath. Trump imposed 25% Section 232 tariffs last year on upholstered couches, kitchen cabinets, and vanities. That rate is set to climb to 50% in 2027. Since most furniture is imported, it remains one of the most tariff-sensitive sectors.
Trump also placed a 10% Section 232 tariff on timber and lumber imports, keeping pressure on foreign suppliers and encouraging domestic production.
Big Pharma felt the heat too. In December, nine major drug companies—including Merck, Bristol Myers Squibb, Amgen, Gilead, GSK, Sanofi, Genentech, Boehringer Ingelheim, and Novartis—agreed to voluntarily lower drug prices for at least three years to avoid tariffs. The message was clear: make your products in America, or pay up.
The Supreme Court may have narrowed one path, but Trump’s broader trade strategy is very much alive. Between autos, furniture, lumber, and pharmaceuticals, major industries are still feeling the weight of tariffs designed to protect U.S. workers and national security.
In the end, this decision didn’t stop Trump’s America-first agenda—it just forced it to take a different route. And judging by how many tariffs remain in place, that route still leads straight toward stronger domestic production and a tougher stance on unfair trade.
